APR Hosts Indonesia’s Minister of Industry at its Construction Site

Indonesia’s Minister of Industry, Ir. Airlangga Hartarto, MBA, MTT, visited Pangkalan Kerinci, Riau Province, on 21 January 2018 to view the progress of Asia Pacific Rayon’s (APR) new mill. Upon completion, the mill will become Indonesia’s largest integrated rayon facility, with a total investment of around 10.9 trillion rupiah (USD 785 million) and production capacity of 240,000 tonnes per year. The new factory strategically supports the development of Indonesia’s textile industry while reducing the nation’s dependence on imported cotton and rayon materials.

Supporting Indonesia’s Textile Industry and Global Textile Production
Minister Hartarto acknowledged the group’s investment and commitment to the government’s long-term goal of establishing Indonesia as a key competitor in the global textile industry. The facility’s construction will potentially increase Riau Province’s GDP from the non-oil and gas sectors by up to 1.49%, while operations will similarly boost supporting business across the various sectors that APR engages with. By increasing domestic rayon fibre production, APR supports the national economy and decreases the need for raw material imports, which in turn reduces Indonesia’s carbon footprint from cross-border transportation emissions. Together, these different benefits will help boost Indonesia’s competitiveness on a global scale, in both textile production and sustainable development.

Responsible Production for Sustainable Development
Rayon fibre is derived from natural vegetation and requires significantly less water and energy intensity to manufacture compared to traditional cotton fibre. All of the factory’s production will be from 100% renewable existing plantation supply that has been internationally and nationally certified. Overall, the facility will be a positive addition to Indonesia’s growing sustainable development endeavours, contributing to economic growth while keeping environmental and social concerns at the core of its operations.

Community at the Core
APR’s director, Thomas Handoko, expressed optimism for Indonesia’s largest integrated rayon factory to bring widespread positive economic and social benefits to the surrounding communities. As well as supporting downstream business development, APR’s factory will generate over 5,000 job opportunities in the construction and operation phases, satisfying domestic demand. Over the next 10 years, APR aims to be a catalyst in transforming Pangkalan Kerinci into a textile hub and building a vibrant textile industry in the Riau province.

Looking Ahead
APR’s fibre will be used in a wide range of products across different industries, such as bedding, clothing, towels, wet wipes for infants, masks, and many other personal hygiene products. Operations are expected to commence in Q3 2018.